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Advance tax to be deposited by 15.09.2013 Banks remain open on Sat,Sunday

The provisions of advance tax are applicable on all types of persons irrespective of the residential status of the person.Due date to deposite 2nd installment of advance tax for corporate assessee and Due date for non corprate assessee for 1st installment is 15.09.2013 for fiancial year 2013-14.However on 15.09.2013 is sunday .As per general clause act,If last day for payment of any tax is a holiday in bank , the assessees can make the payment on the next immediately following working day.In view of these provisions CBDT has issued a press release as under.

CBDT PRESS RELEASE, DATED 12-9-2013

It is informed that the payment of Quarterly Advance Tax on or before 15th September, 2013 by the tax payers is a statutory requirement. All such tax payers who are liable to pay advance tax must make payments in the designated branches of the banks authorized to accept tax payments.

2. All such designated branches of authorized banks have been asked to function on 14th and 15th September, 2013 (Saturday & Sunday) to accept advance tax payments. If any tax payer fails to pay the advance tax on 14th/15th September, 2013, he can make the payment even on 16th September, 2013.

Senior citizen exempted from advance tax

W.e.f. current Financial year i.e 2012-13(assessment year) ,Resident Senior citizens (age 60 years on or before end of previous year) are exempted to deposit Advance Income Tax ,if they do not have income from business and profession.

Presumptive scheme Section 44AD

An assessee who has opted for the scheme under section 44AD on presumptive basis at the rate of 8 percent of turnover , is also exempted to deposit advance tax.

Income Liable for advance tax

All items of income (including capital gains) are liable for payment of advance tax .For capital gains installment due in future is required to pay only. No interest will be charged for earlier installments not paid . However condition is that you have paid 100 % advance tax before 31st march.

Suppose :you have capital gain after 15 December,2013 then no interest is to be charged for non payment of 15 September installment and 15 December installment ,if you pay the 100 % advance tax on or before before 31.03.14

Computation of Advance Tax

Tax can be computed on the current income(estimated) at the income tax rate applicable to person . From the tax so computed ,tax deducted (TDS) /Tax Collected (TCS) at source is to be deducted .

Cut off Amount

Advance Tax is payable only if net tax payable on Income of the full Financial year is Rs 10000 or more.if Tax payable is less than Rs 10000 then no Advance tax is payable.Surcharge, education and higher education cess should also be considered while calculating the advance tax liability

Due date to Pay advance Tax

Advance tax is required to be paid by the all persons, both corporate assessee (company assessee) and non-corporate assessee (other than non-corporate assessee). The advance tax is to be paid in the following installments on the following dates:

For Non-Corporate Assessee

On or before 15 September - not less than 30% of tax payable

On or before 15 December - not less than 60% of tax payable

On or before 15 March - not less than 100% of tax payable

For Corporate Assessee

On or before 15 June - not less than 15% of tax payable

On or before 15 September - not less than 45% of tax payable

On or before 15 December - not less than 75% of tax payable

On or before 15 March - not less than 100% of tax payable

Mode of advance Tax : As per circular number 5/2008 ,all corporate assessees and all other assessees (who are subject to compulsory audit under section 44AB ) is required to deposit tax through online mode only.Further online payment can be done through friends /relative account also.On who's name advance tax Cheque is to be issued
To deposit tax through cheque you should issue cheque as under

"your bank name a/c Income Tax" suppose you are going to deposit tax in ICICI Bank then to cheque should be issued in favour of.

"ICICI Bank A/c Income Tax"

Interest on late deposit :
If advance tax has not been deposited as per above schedule , simple interest @ 1% per month or part there of , for short amount shall be applicable.